Problem: Comparative statement data for Douglas Company and Maulder Company, two competitors, appear below. All balance sheet data are as of December 31, 2009, and December 31, 2008.
Hint: Prepare vertical analysis and comment on profitability.
Instructions:
(1) Prepare a vertical analysis of the 2009 income statement data for Douglas Company and Maulder Company in columnar form.
(2) Comment on the relative profitability of the companies by computing the return on assets and the return on common stockholders' equity ratios for both companies.